An Analysis on the Relationship between an Industrial Park Construction and the Factors that Determine Its Impacts: The Case of Hawassa Industrial Park, Ethiopia

Abstract

The construction and operation of industrial parks (IPs) has been widely used as a major socio-economic development strategy by most policy and decision-makers. However, the existing empirical researches are mixed with regard to the construction of IPs and the factors that determine their impacts. Besides, there are no sufficient empirical studies conducted, in developing countries like Ethiopia, regarding the relationship between IPC and the predictor variables that determine its impacts. Therefore, the main objective of this study was to analyze the relationship between industrial park construction (IPC) and the immediate socio-economic factors that determine its impacts, taking Hawassa industrial park as a unit of analysis. For this research, mixed method approach was employed and this is mainly an explanatory research. From the total population of 13,680; 389 samples were taken using simple random sampling technique. However, only 337 (86.6) questionnaire were properly filled and returned. To substantiate and triangulate the information collected through questionnaires, interviews were conducted with key informants. Both primary and secondary sources of data were used to gather pertinent information. The data collected were analyzed using correlation and regression analysis. The findings of the study revealed that there is close relationship between an IPC and the immediate factors that determine its impacts. However, the correlation value of each factor is found different. Therefore, understanding the close relationship between the IPC and the immediate factors that determine IPs’ impacts, the Hawassa IP administration and the Ethiopian government have to design proper policies so as to harness the benefits gained from the park and minimize the costs.